Oppenheimer’s Favorite Stocks For Next 12 Months: Top 32 Stock Picks

27. Carrier Global Corporation (NYSE:CARR)

Share Price Upside: 1%

Number of Hedge Fund Investors In Q2 2024: 45

Average Analyst Share Price Target: $71.71

Carrier Global Corporation (NYSE:CARR) is one of the biggest industrial products providers in America. Its products include cooling, automation, fire management, and other systems for use in residential, commercial, and industrial properties. Since Carrier Global Corporation (NYSE:CARR) sells large scale systems and heavy duty products, it tends to thrive when inflation is low and businesses can easily borrow money to fund their construction projects. Additionally, it also means that there is significant revenue visibility for the firm in the form of pre orders and backlogs which can also provide a pulse for future trends. Carrier Global Corporation (NYSE:CARR)’s considerable assets, as evidenced by a hefty $10 billion in cash and equivalents mean that it can adequately weather any economic storm. They also provide it with key economies of scale to keep costs low for expensive items and develop important customer partnerships. The stock might be in for some turbulence though, as Carrier Global Corporation (NYSE:CARR) is currently focused on divesting its non air conditioning business. Oppenheimer is optimistic though as it states that the firm “demonstrated ability to deliver above-average incremental and improving FCF conversion.”

Diamond Hill Capital, though, isn’t. Here’s what it said in its Q4 2023 investor letter:

“HVAC products and services provider Carrier Global is seeking to sell its non-HVAC business, creating some uncertainty around the stock’s near-term outlook. We exited our position in favor of more compelling opportunities.”